4. Chad–Cameroon: International Bank for Reconstruction and Development/International Finance Corporation—Petroleum Development and Pipeline OVERALL PROJECT DATA Stage: Approved, along with capacity building projects. World Bank environmental assessment category A. IBRD Project I.D.: TDPE44305. IFC Project I.D.: 4338. Project first entered: March 1997. Entry last updated: August 2001. DESCRIPTION OF OVERALL PROJECT This project is a cluster of projects summarized in the following short entries. The longer description, drawn in part from the entry in the 1999 USAID report and in part from action in 2000, is merely a summary of a complex series of reviews, meetings, and memorandums that continue as the relevant agencies of various governments and the World Bank follow through on commitments made in the approval process. Further information is available from USAID, the U.S. Treasury Department, and several NGOs—including Environmental Defense and the Center for International Environmental Law. The core of the project is a $3.7 billion pipeline from Chad to Cameroon’s Atlantic coast and a port facility to load oil onto tankers. In January 2000, in response to the acknowledged need to increase the capacity of both countries’ governments to regulate such operations and to manage the revenue from them, the bank added capacity-building projects. that were not subject to full environmental assessments.(misleading; implies that they should have been subject to full EAS when in fact full EAS not required). (Need to delete following since USAID opinion as to whether EA circulated should have had these elements (not required according to WB guidelines) and also since same text appears already in USAID’s Comments (in Mid-2001 section:) The EA circulated for the pipeline was from the oil consortium, rather than one produced or formally refined and adopted by the governments, as required under normal World Bank operations. The latter could have addressed clearly and officially many questions, especially about a) financing and legal and institutional responsibility for oil spills and b) establishment and management of parks set aside to conserve biodiversity reduced by the direct and indirect impact of the project. There also were questions about the funding adequacy of the indigenous peoples plan, the governance capacity of both governments, the cumulative impact of the project on the poor and displaced peoples (particularly pygmy minorities), and the details about an international advisory group (such as its budget, its powers, and its relationship to other aspects of project oversight). The project will provide support to the Chad and Cameroon governments in implementing the Chad–Cameroon pipeline, especially with respect to environmental issues and development of domestic oil resources. It involves developing Chad’s oilfields and constructing a petroleum export pipeline from the south of Chad to the Atlantic coast of Cameroon and related marine installations. The objectives of the project are § To promote the economic growth of Chad and Cameroon through the private sector–led development of Chad’s substantial petroleum reserves and their export through Cameroon § To strengthen Chad’s management of petroleum revenues through a technical assistance component § To strengthen Chad and Cameroon’s capacity to monitor the consortium’s activities and the environmental safeguards in place The project involves § Developing 300 production wells in Chad’s Doba oilfields § Constructing a 30-inch, 1,050-km buried pipeline (170 km in Chad, 880 km in Cameroon) from Chad’s oilfields to Cameroon’s Atlantic coast, and related pumping stations, ancillary facilities, and infrastructure § Installing marine export terminal facilities in Cameroon (a moored floating storage and offloading vessel) and associated marine pipelines and related facilities The following are the elements included in this cluster of projects: 4-a. Cameroon—Environment/Governance SUBPROJECT DATA (R) Petroleum Environment Capacity Enhancement (formerly Environment Oil Technical Assistance); (Cr. 3372–CM): approved 6 June 2000 by the executive directors. Environmental assessment category C. PID: CMPE48204. US$5.77 million (IDA). Consulting services to be determined. Implementing agency to be determined. DESCRIPTION OF SUBPROJECT The project will provide support to the government of Cameroon in implementing the environment mitigation plan for the Chad–Cameroon pipeline. 4-b. Cameroon—Power/Pipeline SUBPROJECT DATA (R) Petroleum Development and Pipeline (Ln. 7020–CM): Approved 6 June 2000 by the executive directors. Environmental assessment category A. PID: CMPE51059. US$55 million (IBRD). Consulting services to be determined. Implementing agency to be determined. DESCRIPTION OF SUBPROJECT The project involves a) constructing a petroleum export pipeline from the south of Chad to the Atlantic coast of Cameroon and related marine installations and b) developing Chad’s oilfields. 4-c. Chad—Power/Pipeline SUBPROJECT DATA (R) Petroleum Development and Pipeline (Ln. 4558–CD): Approved 6 June 2000 by the executive directors. Environmental assessment category A. The final environmental assessment is available from the World Bank’s Infoshop. PID: TDPE44305. US$35 million (IBRD). Consulting services to be determined. Project Services Manager, Esso Exploration and Production Chad, Inc., 800 Gessner, Suite 400, Houston, Texas, USA 77024, fax: (1–713) 973–5230; Ministry of Mines, Energy, and Petroleum, BP 816, N’Djamena, Chad, tel: (235) 51–21–88, fax: (235) 51–25–65, 51– 30–43; Société nationale d’hydrocarbures, BP 955, Yaoundé, Cameroon, tel: (237) 20– 19–10, fax: (237) 20–46–51. DESCRIPTION OF SUBPROJECT The project will support a) constructing a pipeline to the coast of Cameroon, b) developing the Doba oilfields, and c) transporting oil from Chad to the coast of Cameroon. 4-d. Chad—Power/Governance SUBPROJECT DATA (R) Petroleum Sector Management Capacity-Building (formerly Petroleum Technical Assistance/Oil Sector); (Cr. 3373–CD): Approved 6 June 2000 by the executive directors. Environmental assessment category B. PID: TDPE48202. US$24 million (IBRD/IDA). Consulting services to be determined. Ministry of Mines, Energy, Hydraulics, and Petroleum, N’Djamena, Chad. 4-e. Chad—Management of the Petroleum Economy Project SUBPROJECT DATA Original unit: AFC07. Last updated: 27August 27 2001. Project status: active. Sector: public sector management. Subsector: other public sector management. Environmental category C. Bank team lead: Huybens Elisabeth. Project ID: P062840. Main Loan/Credit #: 33160. Approval Date: 27 January 2000. Closing Date: 30 June 2005. IBRD commitment: 0. IDA commitment: $17.5 million. IBRD+IDA Comm.: $17.5 million. Grant Amount: 0. Total Project Cost: $17.5 million. Product line: IBRD/IDA. Lending Instrument: specific investment loan. Borrower: government of Chad. Implementing Agency: Cellule Économique—Presidency of the Republic. DESCRIPTION OF SUBPROJECT This subproject was approved in January 2000, several months ahead of the other components it supports. The project development objective is to help Chad deploy oil revenue efficiently and transparently to reduce poverty. The proposed project accompanies the proposed IBRD participation in the Chad–Cameroon Petroleum Pipeline Project and an IDA technical assistance project to strengthen the management of the petroleum sector and environmental management. It also complements IDA operations supporting expenditure programs in the priority poverty reduction sectors. The project would build capacity in Chad to help integrate sector programs within a viable consolidated budget and public expenditure framework, manage macroeconomic distortions induced by oil exports, provide the analytical underpinning for the allocation of public resources to poverty reduction, implement the mechanisms mandated by law for the control and oversight of oil revenues, associate the civil society to policy formulation, and inform it on the outcomes of public resource use. The project would have five components: 1) strengthening of public financial management, by upgrading and rationalizing the budget cycle, including the macroeconomic and public expenditure framework, budgetary programming, revenue mobilization, expenditure circuits, debt and cash flow management, the internal control and audit systems, and financial reporting; 2) production of a poverty database and reporting system and participatory articulation of a strategy for poverty reduction; 3) support to civil service reform, including implementation of reform in key economic administrations; 4) implementation of oversight and control capacities in the Auditor General’s Office and the Committee for Oversight and Control of Petroleum Revenue and information of the civil society on the implementation of the petroleum revenue management strategy; and 5) monitoring of economic reform. 4-f. IFC—Petroleum Development and Pipeline Project SUBPROJECT DATA Loans in the amount of $100 million in A-loans and up to $300 million in B-loans to the Chad Oil Transportation Company, S.A. (Project appraisal document, 13 April 2000, WB/IFC Report No. 19343 AFR). The pipeline contribution was changed by April 2000 from the early 1999 figures: Projected IBRD funding: $90 million. Projected IFC funding: $250 million of projected total cost: $3.5 billion. By April 2000 they had become IBRD loans of $39.5 million to Chad, $53.4 million to Cameroon, and IFC loans of $100 million in A-loans and up to $300 million in B-loans